American Express Company
Exchange: NYSESector: Financial ServicesIndustry: Credit Services
American Express is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services and experiences that enrich lives and build business success. Founded in 1850 and headquartered in New York, American Express' brand is built on trust, security, and service, and a rich history of delivering innovation and Membership value for our customers. With over a hundred million merchant locations across our global network, we seek to provide the world's best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations.
Did you know?
Price sits at 46% of its 52-week range.
Current Price
$300.18
-0.11%GoodMoat Value
$798.19
165.9% undervaluedProfile
Valuation (TTM)
Market Cap$206.78B
P/E19.09
EV$217.94B
P/B6.18
Shares Out688.85M
P/Sales3.09
Revenue$66.97B
EV/EBITDA13.92
American Express Company (AXP) Stock Analysis
GoodMoat Analysis
American Express presents a compelling case for a value investor, with a strong moat score of 8/14 and a business quality that likely qualifies for further analysis. However, the current price of $300.24 appears deeply undervalued relative to the GoodMoat target of $798.19, suggesting a significant margin of safety.
Read full analysis
American Express operates a closed-loop payment network, acting as both a card issuer and a payment processor. This unique model grants it a powerful moat, scoring an estimated 8/14 on the GoodMoat framework. Key advantages include high switching costs for its premium cardmembers, a globally recognized brand, and proprietary transaction data that fuels its marketing and risk management. The company's financials demonstrate high quality, with a robust ROE of 32.4% and a strong operating margin of 20.6%, though its debt-to-equity ratio of 1.73 warrants attention. According to the Decision Framework, a moat score of 8 and strong financials would likely result in a Business Score of 10-14/20, passing the Moat & Quality Gate. The valuation is the most striking aspect. At $300.24, the stock trades at a P/E of 19.1x. The GoodMoat target price of $798.19 implies a margin of safety of over 60%, which falls into the 'Deeply Undervalued' band (>40%) per the framework's valuation assessment. This significant disconnect between price and target value makes American Express a company that merits a thorough, independent investigation by a value investor to understand the drivers behind the target and assess any associated risks. Analysis based on data as of 2024-05-15.
Market Cap$206.78B
Current Price$300.18
P/E Ratio19.09
Forward P/E—
PEG Ratio1.14
EPS$15.38
Book Value$48.59
P/B Ratio6.18
AXP Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 4.9% FCF growth (CAGR)
Cash vs Debt
Net Debt: 10.0B
Revenue
40.0B
FY19
31.4B
FY20
43.8B
FY21
50.7B
FY22
55.6B
FY23
60.8B
FY24
67.0B
FY25
Net Income
6.8B
FY19
3.1B
FY20
8.1B
FY21
7.5B
FY22
8.4B
FY23
10.1B
FY24
10.8B
FY25
AXP 52-Week Range
$228.99
$382.83
50-Day MA: $324.42200-Day MA: $333.40
Did you know?
Trading 166% below its estimated fair value of $798.19.
American Express Company (AXP) Financial Summary
American Express Company (AXP) is a Financial Services company in the Credit Services industry, listed on NYSE. The stock currently trades at $300.18 with a market capitalization of $206.78B.
Key valuation metrics include a P/E ratio of 19.09, price-to-book ratio of 6.18, and EPS of $15.38. The company reports a profit margin of 16.2% and return on equity of 32.4%.
AXP Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $206.78B |
| P/E Ratio | 19.09 |
| EPS | $15.38 |
| P/B Ratio | 6.18 |
| P/S Ratio | 3.09 |
| EV/EBITDA | 13.92 |
| Dividend Yield | 1.10% |
| Profit Margin | 16.2% |
| Return on Equity | 32.4% |
| Debt/Equity | 1.73 |
AXP Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $39.98B | $6.76B |
| FY20 | $31.36B | $3.13B |
| FY21 | $43.80B | $8.06B |
| FY22 | $50.68B | $7.51B |
| FY23 | $55.59B | $8.37B |
| FY24 | $60.76B | $10.13B |
| FY25 | $66.97B | $10.83B |
American Express Company (AXP) Valuation
Based on GoodMoat's DCF model, American Express Company has a fair value estimate of $798.19. At the current price of $300.18, the stock appears 62.4% undervalued relative to our intrinsic value estimate.
AXP Quality Indicators
American Express Company maintains a profit margin of 16.2% and an operating margin of 20.6%. Return on equity stands at 32.4%. Debt-to-equity ratio is 1.73.
About American Express Company
American Express is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services and experiences that enrich lives and build business success. Founded in 1850 and headquartered in New York, American Express' brand is built on trust, security, and service, and a rich history of delivering innovation and Membership value for our customers. With over a hundred million merchant locations across our global network, we seek to provide the world's best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations.
AXP Free Cash Flow
American Express Company generated $16.00B in trailing twelve-month free cash flow, representing an FCF yield of 7.74%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
AXP Shares Outstanding
American Express Company has 0.69 billion shares outstanding at a share price of $300.18, giving it a market capitalization of $206.78B.
AXP Recent Insider Trades
Recent insider transactions at American Express Company include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Lieberman Quinn Jessica (EVP - Controller) | SELL | 3,032 | $909660.64 |
| Joabar Raymond (Grp. Pres., Global Comm. Serv.) | SELL | 2,835 | $961008.30 |
| Grosfield Howard (Group Pres., U.S. Cons. Serv.) | SELL | 8,134 | $2.82M |